First Trust Exchange-Traded Fund IV - FT Vest SPCX & Target Income ETF (XVSP)

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XVSP is an actively managed ETF aiming to generate enhanced monthly income from SPCX stock. The ETF targets an annualized distribution of 15%, less expenses, above the S&P 500 forward dividend yield by combining direct SPCX share ownership with a multi-layered options strategy including short-duration call option sales, synthetic replication via paired call and put options, US Treasury income, and Box Spread premiums. Positions are adjusted weekly based on market volatility. Investors should be aware of the key trade-off: the strategy converts a portion of SPCXs upside potential into current income. The ETF offers no downside protection. Distributions paid monthly may be treated as ordinary income or reclassified. Shares held less than one year should not expect to receive the full annualized target income. The ETF does not seek to match or outperform the total return of SPCX stock or the S&P 500 Index, and achievement of the distribution target is not guaranteed.